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View Full Version : Print the deficit to pay the debt




cdc482
11-10-2011, 06:48 PM
Hey all,

My friend is retarded. I've explained to him why this would suck for everyone, but he insists that this is a good idea. I am tired of dealing with him. Please explain why he is wrong:

His basic idea is that we should print the entire debt and pay off all our obligations, and that the entire economy would be fine afterwards. He says that wages, prices, and revenues would all be double in nominal value, but stay the same in real value. Furthur, that only savings would lose any value.

Anti Federalist
11-10-2011, 08:16 PM
http://www.rrtraders.com/Crafts/scan-13-zimbabwe-money.jpg

http://t2.gstatic.com/images?q=tbn:ANd9GcTp78ZL09vsRUiZuuRnotnEDK-15VJhXhM0Fi0brc7sVUEzTof4LgioNk6SaA

pcosmar
11-10-2011, 08:28 PM
http://4.bp.blogspot.com/_SSUbVSG_KVY/THZhRAo_5nI/AAAAAAAAADg/XObQuxv9in0/s1600/hyperinflation.jpg

http://2.bp.blogspot.com/_s6MoaWlpg6A/TC_Tl039SJI/AAAAAAAAAMk/wXfQR1iH9iE/s1600/maxwell_fig05b.jpg

Hell No.
An extremely bad idea, demonstrated several times.
:(

trey4sports
11-10-2011, 08:32 PM
Hey all,

My friend is retarded. I've explained to him why this would suck for everyone, but he insists that this is a good idea. I am tired of dealing with him. Please explain why he is wrong:

His basic idea is that we should print the entire debt and pay off all our obligations, and that the entire economy would be fine afterwards. He says that wages, prices, and revenues would all be double in nominal value, but stay the same in real value. Furthur, that only savings would lose any value.

nice, lol.

Secondly if we actually did that the world would go into chaos and the last vestage of confidence in our currency would be lost. We would instantly lose our status as reserve currency and you'd see inflation expand like crazy since off-shore dollars would flood the U.S. economy.

Mahkato
11-10-2011, 08:36 PM
Even if that worked, you'd be treating the symptom instead of the disease. It'd be like doing liposuction and continuing to eat 6,000 calories a day.

specsaregood
11-10-2011, 08:37 PM
Hey all,

My friend is retarded. I've explained to him why this would suck for everyone, but he insists that this is a good idea. I am tired of dealing with him. Please explain why he is wrong:


It wouldn't suck entirely for people with savings in actual assets, such as PMs. In fact I look forward to it eventually happening....because it will happen, it always does. Got gold? pay off that mortgage in greatly reduced USD for a couple dozen ounces...

Anti Federalist
11-10-2011, 08:41 PM
It wouldn't suck entirely for people with savings in actual assets, such as PMs. In fact I look forward to it eventually happening....because it will happen, it always does. Got gold? pay off that mortgage in greatly reduced USD for a couple dozen ounces...

Shhhhh, quiet...you'll ***** the deal for all of us.

LoL

specsaregood
11-10-2011, 08:46 PM
Shhhhh, quiet...you'll ***** the deal for all of us.
LoL

Don't worry, I'm sure the bankers will pre-empt us by paying the govt to pass legislation allowing them to rewrite mortgage contracts and change the terms retroactively....